Important Questions and Answers for Class 11 Economics Chapter 1 Introduction 2025-26

1. Multiple choice questions.

Q1. Which of the following best defines Economics as per the NCERT chapter?

• (a) Study of numbers and measurements
• (b) Study of production of machines only
• (c) Study of how people and society choose scarce resources for wants
• (d) Study of chemistry in business

Answer: (c) Study of how people and society choose scarce resources for wants. This matches the chapter’s NCERT definition highlighting choice among alternatives due to scarcity.

Q2. Which of the following is a qualitative data example as per the chapter?

• (a) Gender
• (b) Income in rupees
• (c) Number of books sold
• (d) Distance in kilometers

Answer: (a) Gender. Gender describes an attribute, not a number, fitting qualitative data as defined in the chapter.

Q3. What is the main reason for the existence of scarcity?

• (a) Limited resources and unlimited wants
• (b) Unlimited resources and limited wants
• (c) Unlimited resources and unlimited wants
• (d) Limited resources and limited wants

Answer: (a) Limited resources and unlimited wants. The chapter identifies scarcity due to this mismatch.

2. Very Short Answer (VSA).

Q4. What is meant by ‘alternative uses of resources’?

Answer: Alternative uses of resources means that the same resource can be used for multiple purposes. For example, land can be used to grow rice or wheat.

Q5. Define economic activity.

Answer: Economic activity is any activity performed for monetary gain or livelihood, such as producing, selling, or consuming goods and services.

Q6. What does ‘statistics’ deal with in economics?

Answer: Statistics in economics deals with the collection, presentation, analysis, and interpretation of numerical data related to economic issues.

3. Short Answer Questions.

Q7. Explain the difference between quantitative and qualitative data with examples.

Answer: Quantitative data refers to information that can be measured in numbers, like income or marks. Qualitative data refers to attributes or categories, like gender or health status. For example, “income: Rs 5000” is quantitative, while “gender: female” is qualitative.

Q8. Why is statistics considered an important tool in economic planning?

Answer: Statistics helps planners collect and analyze data related to economic factors such as production, consumption, and income. By summarizing trends and relationships, it enables policy makers to formulate and evaluate economic policies more effectively.

Q9. How does scarcity lead to the problem of choice in economics?

Answer: Scarcity arises because resources are limited but wants are unlimited. As a result, individuals and societies must choose how to allocate resources among competing uses, leading to the fundamental economic problem of making choices.

4. Long Answer Questions.

Q10. Discuss the roles of consumption, production, and distribution in the study of economics, as per the chapter.

Answer: Economics studies how people and societies use scarce resources to satisfy their wants. The subject is divided into three major activities: consumption, production, and distribution. Consumption focuses on how consumers decide to spend their limited income on different goods and services. Production analyzes how producers decide what and how much to produce with available resources. Distribution examines how national income is shared among different groups through wages, profits, and interest. Together, these help economists understand and solve key economic problems.

1. Study of consumption explains consumer choices under constraints.
2. Examination of production decisions clarifies resource allocation.
3. Distribution insights reveal patterns of income sharing and inequality.

Q11. “Statistical methods are no substitute for common sense.” Explain with reference to the story in the chapter.

Answer: The story describes a family crossing a river, relying only on average measurements instead of real conditions. Though the average height was above the average depth, the actual depth varied and some members drowned. This illustrates that statistical averages must be applied with practical judgment and context to avoid misuse or harmful outcomes.

1. Common sense checks real-world variations, not just averages.
2. Statistical data aids decisions but cannot replace careful observation.

5. Assertion–Reason type questions.

Assertion (A): Statistics helps in summarizing large sets of economic data into meaningful information.
Reason (R): It condenses mass data into a few numerical measures like average.

• (a) A and R are true, and R is the correct explanation of A
• (b) A and R are true, but R is not the correct explanation of A
• (c) A is true, but R is false
• (d) A is false, but R is true

Answer: (a) A and R are true, and R is the correct explanation of A. Statistics does summarize data using averages and other measures as explained in the chapter.

Assertion (A): Scarcity only applies to poor countries.
Reason (R): All resources are plentiful in developed nations.

• (a) A and R are true, and R is the correct explanation of A
• (b) A and R are true, but R is not the correct explanation of A
• (c) A is true, but R is false
• (d) A is false, but R is true

Answer: (d) A is false, but R is true. Scarcity is a universal problem as resources are always limited, whatever the country’s economic status.

6. Case-based questions.

A surveyor is collecting economic data for a city. She notes the monthly incomes of 500 families, records their employment status, and asks about their education levels. She plans to present the results in tabular and graphical forms, then find the average income and analyze trends.

(i) Which type of data (quantitative or qualitative) is "monthly income"?

Answer: Quantitative data, because it can be measured numerically.

(ii) What does analyzing trends in the data involve?

Answer: It involves studying patterns or changes in the data over time or across groups.

(iii) Name two methods mentioned for presenting data.

Answer: Tabular and graphical presentations.

(iv) Why is calculating the average income useful?

Answer: It summarizes the overall income level, making the data easy to interpret and compare.

7. Match the following.

Why Studying Statistics for Economics in Class 11 Matters?

Explore statistics for economics class 11 chapter 1 questions and answers to boost your core concepts for CBSE exams. These questions guide you in understanding both theoretical and practical aspects, making your learning journey comprehensive and exam-oriented.

Looking for a reliable resource? Access class 11 economics statistics important questions and detailed solutions in simple language. The focus on statistics for economics class 11 chapter 1 extra questions and answers ensures that important topics are thoroughly revised for your success.

With this support, you can clarify doubts and practice with statistics for economics class 11 chapter 1 pdf, making your preparation smarter and more effective every day.